SIGNAGE FOR LEASE VS Loan for Electronic Message Centers

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Does it seem like digital signage is quickly appearing on every building, in church, schools, government offices, gas stations, liquor stores, and more?   Do you want to get in on this trend but lack in the capital needed to invest in such a fabulous advertising solution?   Digital Signage is now available for little to no money down through optional lease programs.

Leasing VS Loans

A loan may offer competitive interest rates, but depending on the bank and the size of transaction, borrowing from a bank could affect your line of credit. Preserve those lines of credit by choosing to lease.

• Shorter applications and quicker approvals
• Utilizes equipment as collateral
• Does not affect bank relationship or line of credit
• Requires no money down
• Hedges against obsolescence

• Involves longer approval time and more paperwork
• Requires additional collateral as security
• May go against line of credit
• No residual position is taken on the equipment
•Traditionally structured with money down

Leasing Types

Capital (Finance) Lease
• Structured very much like a loan
• The equipment is typically purchased for one dollar at the end of the term
• Often referred to as a “buck out” lease
• Lessee is entitled to depreciation and interest expense
• Lessee is responsible for maintenance, taxes and insurance

Operating (Tax/True) Lease
• Also known as a Fair Market Value “FMV” lease
• Lessee recognizes monthly lease payments as operating expense
• Lessor retains ownership
• Several end-of-term options:
• FMV purchase option
• Renew the lease
• Upgrade the equipment
• Return the equipment to the leasing company

Leasing Benefits

• Improves cash flow
• Provides flexible payment schedule
• Offers tax advantages and savings
• No money down
• Preserves bank credit lines
• Allows equipment to be leased as collateral
• Protects against obsolescence
• Forecasts costs more accurately
• Allows soft costs to be financed
• Offers quick approval with immediate ordering
• Takes a residual position
• Increases profits immediately

Contact Signarama Troy for your lease application today.  Check out our blog “Where Can I Get Financing for my Sign” for lease alternatives.

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